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Benefits of a comprehensive business plan

The process of planning, forming and operating a new business in Michigan can be complex and intimidating for those without experience. Assistance from financial advisers, commercial law attorneys, investors and other experts can greatly ease this process, but an intelligent and exhaustive business plan remains one of the most crucial tools in a entrepreneur's arsenal.

Some would-be business owners neglect a business plan because they view it as restricting, superfluous or simply unnecessary, with many individuals only drafting such a plan in order to search for funding. However, the benefits imparted by a comprehensive business plan far outweigh the inconveniences of drafting one, especially in the long term.

Effective business planning allows an entrepreneur to ensure he or she proceeds with the formation and development of a business in a way that builds toward achievable, concrete objectives and helps him or her better craft short and long-term strategies for success. Plotting out specific priorities for a fledgling company's growth and expansion help business owners better adapt to changes in the marketplace and develop educated plans for how to deal with both common and unexpected challenges. This is crucial in protecting a business from instability and ensuring its long-lasting financial viability and success.

Detailed plans are also critical for entrepreneurs that plan to operate a business together or manage a large, diverse team of employees. Standardizing the way one hires, evaluates and compensates employees also helps a new business adjust to the frequent and unpredictable human resources issues that are practically guaranteed to arise with continued growth.

Business plans also help entrepreneurs record and manage their liquid and non-liquid assets, an issue of dramatic importance for new businesses. Keeping track of such data allows a business to predict changes in sales, expenses and debts. It also increases a company's chances of staying solvent and avoiding regulatory and tax-related problems.

Source: Entrepreneur, "10 Business Plan Benefits You Might Be Forgetting" Tim Berry, Sep. 06, 2013

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